THE SECOND PRESIDENTIAL DEBATE FFS

HSD · October 17, 2012

I adore Obama, whether he's considered a good President or not.

Since I was 15, my family have got me his books and things (Only my family really know) and I even have a limited edition marvel comic, still in the seal that's about him :')

evilwebby · October 17, 2012

pfim said:
Sorta like Germany and Greece, though China is nothing like Germany.

The Chinese need us consuming their goods.

I'm not sure I understand the last argument. If something changes their strategy, it will likely be their own increase in consumption of goods.

Yes the day is coming when China will not feel the need to export all their stuff to us in return for an IOU that will never be repaid. The West is largely living beyond its means only because others have been living beneath theirs; this initially allowed the developing economies an easy way to grow by having a ready made market to export into, but now as the productivity gap diminishes then the Chinese will have a choice to export the goods the produce or to consume themselves.

And if they let their supressed currency unpeg from the USD , then the Chinese people will find their purchasing power increasing very rapidly as raw materials will become become much cheaper almost overnight, but that is a position from which there will be no turning back, so they will no longer find it as easy to export, and will then be faced with many of the same problems as the developed economies, albeit with a much sounder financial base.

This may seen rather farfetched, but history shows that sisemic shifts like this tend to occur suddenly and violently, rather than in a smooth an orderly fashion.